PUTRAJAYA (May 30): The government is committed to the Johor Bahru-Singapore mass rapid transit (MRT) project, but will review its costs and terms and conditions, said Transport Minister Anthony Loke.
"The project will continue but we will review its terms and conditions, and the Finance Ministry will look at ways to reduce the costs," he told a press conference today.
Loke refused to say if the decision to continue with the 4km Rapid Transit System (RTS) was made by Prime Minister Tun Dr Mahathir Mohamad.
He was asked to comment on the status of the RTS particularly in light of the cancellation of the RM110 billion high-speed rail project between Kuala Lumpur and Singapore, and the MRT Line 3 in Kuala Lumpur.
The RTS, which is expected to commence operation by Dec 31, 2024, will connect Bukit Chagar in Johor and Woodlands in Singapore.
The cost of the project has yet to be determined as it would depend on the rail alignment agreed to by a joint venture to be set up between Prasarana Malaysia Bhd and Singapore's SMRT Corp Ltd, which would also jointly hold a 30-year concession period on the link.
On Jan 18, Singapore and Malaysia signed a bilateral agreement, signifying both nations' commitment to the project.
The agreement outlined the technical, safety and security requirements, commercial, financing, procurement and regulatory frameworks, and customs, immigration and quarantine arrangements.
The link over the Johor Straits will be able to carry up to 10,000 passengers per hour per each way, and will eventually cease KTM Bhd's Tebrau train service to the island republic.
Calls for tender for the rail project are expected this year.
On May 8, Damansara Realty Bhd said it is teaming with China State Construction Engineering (M) Sdn Bhd to bid for the project.
Meanwhile, Loke said there would be minimal cancellation costs to cessation of MRT Line 3.
"I don't have any details but the Cabinet has decided to cancel it. There would be minimal cancellation costs because only minimal initial work was done," he said.